Can real estate agents deny your offer

Question

My question is, is it legal for real estate agents to not turn your offer in to their client? If I want to put in a low offer on a house that needs a lot of work and has been on the market for a very long time, could the real estate agent not show the offer to the owner because it means they would be accepting a lower commision?

Jay Orlauski · Answer

@hunter -  in my state, all listing contracts MUST have an expiration date otherwise the agent can get in big trouble. Expiration dates will be different for every seller - depending on how long they want to give their agent to sell the place - it may expire after only 3 months ( or longer)  and they can either renew it or go to another agent they think may be able to move it quicker.

Account Closed · Answer

A lot of buyers get uptight about providing a POF. I say if you are a legit buyer provide a bank statement, and your chances are very good at closing a deal as long as the offer is a fair one and the seller will know you are serious, and you have funds to close.

Hunter Horan · Answer

Great tip! I haven't thought of that. Is there an expiration date on all listings? If so is it the same for all or is it a case to case type deal?

Bill Gulley · Answer

You might do better working expired listings! And yes there will be commissions if you contract within the protected period of the listing agreement that recently expired if the MLS or activity of that agent was the procuring cause of the deal..:)

Hunter Horan · Answer

Is that mandatory for all deals, or is that something that can be worked around with a little persuasion?

Wayne Brooks · Answer

The listing agent will likely require a POF from you, in order for the seller to accept your offer, and probably with a 10 day max inspection period.

Hunter Horan · Answer

Thank you all so much, you'r all incredibly helpful. One more question, is it possible to do assignments this way? I know it is more common to use FSBOs for assignments because it allows more negotiation. But if I can submit low offers through a real estate agent on a house that has been on the market a while, it seems like it may be possible to score a whole sale deal this way... correct me if Im wrong, Im still new to this!

Thanks again

Bill Gulley · Answer

Agents/brokers must present all bonafide offers, unless that agent has written instructions not to present offers that do not meet minimum terms or conditions required by that seller or owners. This is basic agency law in following the directions of a principal and informing them of all activities related to the agency relationship. No, they may not otherwise take it upon themselves to reject any offer regardless of what is offered, if it can be seen as a reasonable offer, if you offer one hundred dollars for a fifty thousand property, that is not reasonable.   If you offer 35K, that can be seen as a reasonable offer, if the agent has instructions not to present offers below 45K, the agent may reject the offer. A good agent would then inform the owner that an offer for 35K was received and rejected per instructions. :)

Gil Lieblich · Answer

As others have said I don't believe they are allowed to not show it for any reason. if you have a written offer they are obligated to present it to their client. I am not sure if this is state by state and I am not sure if the seller can direct the agent to not show any offers below a certain point. To add to it If i recall the agent is obligated to show the offer with in 24 hrs of receiving it. Again not sure if this is state by state or if there are certain circumstances as would make this not the case.

Wayne Brooks · Answer

Don't expect a written rejection on low ball offers.  The seller isn't obligated to respond.  As an agent I'm obligated to forward it to the seller, unless I have written instructions not to submit certain offers, and my broker is required to maintain a copy for three years, which is why we all went to cloud systems.  I am Not generally obligated to prove to you I submitted your offer though.